Which of the following situations suggests that the decision maker impose binary values for decision variables?
A) The decision maker wants to determine how many units of a product to produce.
B) The decision maker wants to determine whether or not to produce a production lot.
C) The decision maker wants to seek the minimum production cost.
D) All of the above

Question

Quizplus · Accepted Answer

Binary values for decision variables are typically used in situations where the decision is a yes/no or true/false choice, such as deciding whether or not to undertake a specific action. In this case, option B ("The decision maker wants to determine whether or not to produce a production lot.") directly implies a yes/no decision, making binary values appropriate. Options A and C involve quantities and costs, which are better suited to continuous variables.

Which of the Following Situations Suggests That the Decision Maker